Ag:ricultural Credit 



Under this system a man could borrow 

 money without his neighbours knowing all 

 about it. 



There are two divergent opinions in regard 

 to the formation of a system of credit. One 

 view is that the Government should definitely 

 create it, using public money, and the other 

 that a comprehensive system could and 

 should be developed by private enterprise 

 backed by the banks. Action by private 

 enterprise would undoubtedly be preferable ; 

 but although the need for the provision of 

 credit has been strongly urged for some 

 years, few individuals have shown any keen- 

 ness to create credit societies, nor have the 

 banks shown much willingness to encourage 

 them. They do not seem to realize that the 

 mutual guarantee of all the members of a 

 society constitutes first-class security. The 

 need for this access to capital, however, 

 is so great that if private enterprise fails, 

 then the State must step in and must either 

 strongly encourage the movement, or directly 

 undertake the financing of these societies. 

 Possibly the desired object could be achieved 

 by the State guaranteeing the interest, 



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